Setting up a Direct Debit is easy, but we nevertheless want to streamline it even further so we have introduced a paper free Direct Debit set up process which is perfect if you are signing up lots of clients each month. And it is incredibly easy to manage.
Most of our clients opt for either telephone sign up where you take down the customer’s details and set-up the Direct Debit. Or by asking your customers to complete an online form on your website.
You save time. Your customers find the process easy and the risk of entering invalid information is drastically reduced.
Before any Direct Debit can begin, however, it has to be authorised by the consumer and is done in the form of a Direct Debit Mandate, or Direct Debit Instruction.
The Mandate takes the shape of a standard form, which makes it easy for both new and experienced customers to fill in, and guess what? It too is paperless and can be completed over the phone, or by filling in a form online.
Amongst other things, the Mandate authorises the supplier to collect any amount at any time, provided the customer has been notified first.
All payments are covered by the Direct Debit Guarantee, which protects customers from any payments which are taken by mistake or fraudulently.
Naturally, most customers will have signed up with the idea of making a regular fixed payment, so these prior notifications and the Direct Debit Guarantee provide two useful ways of safeguarding customers' interests.
Setting up a Direct Debit payment system is incredibly simple and adding new clients can be done in minutes.
All you need to do is provide the necessary information about your new payer. The bank is then given five working days’ notice that there is to be a new Direct Debit; on day five the payer’s account is then debited and the funds credited directly to a unique client holding account, which can be personalised in your company name.
Cleared funds are then transferred to your account on day seven.
It’s that easy and once your clients are set up the payments go through automatically at the frequency you specific – weekly, monthly, or as infrequently as once a year.
Eazipay offers total support every step of the process and once the system is up and running our expert staff are always just a phone call away should help be needed.
One of the best things about a Direct Debit system is that it's easy to set up and administer.
The first thing to do is to set up a Direct Debit account. Big companies can do this directly with the bank, but it's an expensive and time consuming process, so the vast majority of businesses use a Facilities Management Bureau like Eazipay.
Once the account is set up, the process could not be easier, involving just four simple steps, and once the client is on the system the payments go through automatically at the frequency specified by you.
Once the Direct Debit has been set up, that’s it. There is nothing else to do. The money you are owed will now be collected on time, in full on the day that you want it. If the amount needs to be amended, that’s simple too. And admin time together with invoice chasing time is dramatically reduced. So not only is your cash flow improved but you are saving money because of increased efficiencies.
Paperless Direct Debit is ideal for businesses which sign up a lot of clients each month and it’s incredibly easy to manage.
The most popular methods are:
- Telephone sign up - where client’s details are taken over the phone and immediately put on the computer.
- Online sign up – where clients visit a page on the website and fill in their own details.
Once we have the account details and we know how much to collect and when, you can leave the rest to us. Once the Direct Debit has cleared into your own dedicated account at Eazipay we will transfer it to your own business account. The whole process takes about three working days. How does that compare to the way you collect payments at the moment?
Naturally, Eazipay complies with all the rules and guidance of the Financial Conduct Authority (FCA), which replaced the FSA as the UK's financial services regulator.
One of the FCA's stipulations is that Know Your Customer (KYC) checks should be carried out on all new customers. These, along with other best practice guidelines, advise suppliers to take measures to ‘know your customer’ to reduce payment failure and fraud.
We strongly recommend that, for their own protection, all suppliers follow this guidance before signing up any new customers.
All suppliers should have received or seen at least two different types of document to assure themselves that customers are who they say they are. These include but are not limited to a copy of a bank statement or a utility bill.
A list of verification measures to assist in verifying the payer’s details is available from: http://www.bacs.co.uk/Bacs/Businesses/Resources/SubscriberLibrary/Pages/SubscriberLibrary.aspx